National Beverage Corp. (FIZZ) | Investment Case

1. Company Snapshot

1.a. Company Description

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada.The company offers beverages to the active and health-conscious consumers, including sparkling waters, energy drinks, and juices under the LaCroix, LaCroix Cúrate, LaCroix NiCola, Clear Fruit, Rip It, Everfresh, Everfresh Premier Varietals, and Mr. Pure brands.It also offers carbonated soft drinks under the Shasta and Faygo brands.

The company serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels.National Beverage Corp.was incorporated in 1985 and is based in Fort Lauderdale, Florida.

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1.b. Last Insights on FIZZ

National Beverage Corp.'s recent performance was negatively impacted by slower sales growth, attributed to weaker consumer purchasing and lower food inflation, which underperformed industry peers. Despite strong pricing power and cost control, net sales only reached $291 million in Q2, a slower growth rate. However, the company's operating income grew 7% to $58 million, and earnings per share increased to $0.49 from $0.47. The recent launch of new LaCroix flavors and sponsorship initiatives, such as the partnership with the WNBA's Indiana Fever, may help improve growth prospects.

1.c. Company Highlights

Last Price	33.25
Change Percentage	-4.29%
Open	34.4
Previous Close	34.74
Market Cap ( Millions)	3113
Volume	394899
Year High	49.95
Year Low	32.21
M A 50	35.03
M A 200	41.2

FCF Yield	5.55%
Dividend Yield	0.00%
ROE	43.50%
Debt / Equity	13.87%
Net Debt / EBIDTA	-70.66%
Price To Book	6.17
Price Earnings Ratio	16.75
Price To FCF	18.03
Price To sales	2.59
EV / EBITDA	11.52

2. Transcript Summary

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3. NewsRoom

Head-To-Head Contrast: Baristas Coffee (OTCMKTS:BCCI) and National Beverage (NASDAQ:FIZZ)

Dec -02

Source: defenseworld.net

Connor Clark & Lunn Investment Management Ltd. Raises Stock Position in National Beverage Corp. $FIZZ

Nov -21

Source: defenseworld.net

National Beverage Corp. Announces Commencement of Stock Buyback and Addresses Market Conditions

Oct -30

Source: businesswire.com

LaCroix Announces New Partnership With The Dallas Wings WNBA Team

Jul -11

Source: businesswire.com

National Beverage Corp. Reports Fourth Quarter and Year-End Results . . . Innovation Accelerates Growth

Jul -02

Source: businesswire.com

Coca-Cola Is the King of the Mountain, But These 8 Beverage Companies Are Gaining Steam

Apr -20

Source: 247wallst.com

National Beverage: Volume Growth Should Start To Resume

Mar -21

Source: seekingalpha.com

National Beverage Corp. Innovation Fuels Optimism . . . Reports Improved Operating Profit

Mar -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Flavored Beverage

Expected Growth: 2.0%

National Beverage Corp.'s Flavored Beverage segment growth of 2.0% is driven by increasing demand for healthier and low-calorie beverages, expansion in e-commerce and online sales channels, and strategic product innovation, such as the introduction of new flavors and packaging formats, which appeal to the growing health-conscious consumer base.

7. Detailed Products

Shasta

A line of soft drinks that offers a variety of flavors, including cola, lemon-lime, and fruit flavors

Faygo

A line of craft sodas that offers unique flavors, such as rock & rye and cotton candy

LaCroix

A line of sparkling waters that come in a variety of flavors, including lime, grapefruit, and berry

Rip It

A line of energy drinks that offer a boost of energy and come in various flavors

Dejà Blue

A line of flavored water beverages that come in various flavors, including berry and citrus

Mr. Pure

A line of purified water beverages that offer a clean and refreshing taste

8. National Beverage Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for National Beverage Corp. is medium due to the presence of alternative beverages such as juice, milk, and water. However, the company's strong brand portfolio and product diversification mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for National Beverage Corp. due to the company's strong brand recognition and customer loyalty. Additionally, the company's products are widely distributed, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for National Beverage Corp. due to the company's dependence on a few large suppliers for raw materials such as sugar and packaging materials. However, the company's strong relationships with suppliers and its ability to negotiate prices mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for National Beverage Corp. due to the high barriers to entry in the beverage industry, including high capital requirements and regulatory hurdles. Additionally, the company's strong brand recognition and distribution network make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high for National Beverage Corp. due to the highly competitive nature of the beverage industry. The company faces intense competition from established players such as PepsiCo and The Coca-Cola Company, as well as from smaller, niche players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	10.03%
Debt Cost	3.95%
Equity Weight	89.97%
Equity Cost	8.17%
WACC	7.75%
Leverage	11.15%

11. Quality Control: National Beverage Corp. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cal-Maine Foods

A-Score: 7.9/10

Value: 8.1

Growth: 9.4

Quality: 8.1

Yield: 10.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

National Beverage

A-Score: 5.5/10

Value: 4.0

Growth: 5.6

Quality: 7.8

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

Bunge

A-Score: 5.4/10

Value: 8.0

Growth: 5.6

Quality: 3.8

Yield: 6.0

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

Coca-Cola Consolidated

A-Score: 5.3/10

Value: 4.1

Growth: 8.4

Quality: 6.2

Yield: 2.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Celsius

A-Score: 4.8/10

Value: 0.4

Growth: 10.0

Quality: 6.4

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

Primo Water

A-Score: 4.2/10

Value: 2.8

Growth: 5.2

Quality: 4.8

Yield: 5.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.94%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.75%

National Beverage Corp. - US6350171061

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FIZZ

1.c. Company Highlights

Better Quality

Expensive

Average Yield

Earnings Beats

Revenues Miss

Higher Yield

Revenues Beats

Earnings Miss

Medium Volatility

Fairly Valued

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Flavored Beverage

Expected Growth: 2.0%

7. Detailed Products

Shasta

Faygo

LaCroix

Rip It

Dejà Blue

Mr. Pure

8. National Beverage Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: National Beverage Corp. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.25$

Current Price

33.25$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA